South Eastern Human Development Corp. v. Schweiker

687 F.2d 1150
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 27, 1982
DocketNo. 82-1241
StatusPublished
Cited by9 cases

This text of 687 F.2d 1150 (South Eastern Human Development Corp. v. Schweiker) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Eastern Human Development Corp. v. Schweiker, 687 F.2d 1150 (8th Cir. 1982).

Opinion

HEANEY, Circuit Judge.

South Eastern Human Development Corporation appeals from an order of the district court denying its motion for a preliminary injunction and dismissing its complaint for failure to state a claim on which relief can be granted. We reverse and remand to the district court for the entry of appropriate relief.

I.

INTRODUCTION

This legal dispute has its origin in the debate recently waged in Congress over the proper means of delivering federal social service funds to the citizens of the various states. The statute at issue, the Omnibus Budget Reconciliation Act of 1981 (OBRA) represents a victory for those seeking to minimize federal involvement in the disbursement of such funds. The Act establishes seven block grants to be administered by the states in conformance with certain minimal federal requirements. The block grants replaced a large number of categorical grant programs previously administered directly by the federal government.

The question presented here is a narrow one: What procedure must a state follow in order to receive funds for fiscal year 1982 under the block grant program created to fund community services?

II.

STATUTORY SCHEME

Title VI of the OBRA establishes the Community Services Block Grant Program. The Act authorized the appropriation of $389,375,000 for fiscal year 1982 and for each of the four succeeding fiscal years for the purpose of “ ameliorating] the causes of poverty in communities within the State.” Omnibus Budget Reconciliation Act of 1981, Pub.L.No.97-35, § 672(a) & (b), 95 Stat. 511 (1981) (hereinafter OBRA). The Community Services Block Grant replaces the categorical grants authorized by the Economic Opportunity Act of 1964; that Act was in large part repealed by the OBRA. OBRA, supra, § 683(a) at 95 Stat. 519.

Section 675(a) of Title VI specifies that “[e]ach State desiring to receive an allotment for a fiscal year under this subtitle shall submit an application to the Secretary.” The application must contain assurances by the chief executive officer of the state that the state will comply with the public hearing requirement of section 675(b), described as follows:

(b) After the expiration of the first fiscal year in which a State received funds under this subtitle, no funds shall be allotted to such State for any fiscal year under this subtitle unless the legislature of the State conducts public hearings on the proposed use and distribution of funds to be provided under this subtitle for such fiscal year.

[1152]*1152The application must also contain assurances that the state will make community service grants only to qualifying1 organizations, and only for specified purposes2 relating to the amelioration of poverty. OBRA, supra, § 675 at 95 Stat. 513-516. Subsection (d) of section 675 further provides that the state “shall prepare and furnish to the Secretary a plan which contains provisions describing how the State will carry out” its intended use of the funds. The state’s plan “shall be made available for public inspection within the State in such a manner as will facilitate review of, and comment on, the plan.” OBRA, supra, § 675(d)(2) at 95 Stat. 515.

In fiscal year 1982 only, a state may choose either to administer the Community Services Block Grant or to have the state’s allotment distributed by the Secretary through the programs authorized by the repealed Economic Opportunity Act of 1964. Section 682(b)(3) of Title Vi’s “transition provisions” provides that

[e]ach State which, pursuant to paragraph (1), determines to have the Secretary operate programs under the provisions of law in effect on September 30, 1981, [the EOA] but repealed by section 683(a), shall give notice to the Secretary of such determination. Such notice shall be submitted to the Secretary prior to the beginning of the first quarter of fiscal year 1982 and at least 30 days before the beginning of any other quarter during such fiscal year. For purposes of this section, the quarters for fiscal year 1982 shall commence on October 1, January 1, April 1, and July 1 of fiscal year 1982.

Subtitle C of Title XVII, Chapter 2, entitled “Block Grant Funds” establishes procedural requirements that must be followed by the states when administering any of the block grants created by the OBRA. The two requirements relevant to this appeal— “reports on proposed use of funds” and “public hearings” — are set out in section 1742:

(a) Each State shall prepare a report on the proposed use of block grant funds received by that State, including (1) a statement of goals and objectives, (2) information on the types of activities to be supported, geographic areas to be served, and categories or characteristics of individuals to be served, and (3) the criteria and, method established for the distribution of the funds, including details on [1153]*1153how the distribution of funds will be targeted on the basis of need to achieve the purposes of the block grant funds. Beginning in the fiscal year 1983, the report required by this subsection shall include a description of how the State has met the goals, objectives, and needs in the use of funds for the previous fiscal year as identified in the report prepared pursuant to this subsection for that previous fiscal year.
(b) The report .prepared by a State pursuant to subsection (a), and any changes in such report, shall be made public within the State on a timely basis and in such manner as to facilitate comments from interested local governments and persons.
(e) No State may receive block grant funds for any fiscal year until the State has conducted a public hearing, after adequate public notice, on the use and distribution of the funds proposed by the State as set forth in the report prepared pursuant to subsection (a) with respect to that fiscal year.

OBRA, supra, § 1742 at 95 Stat. 763.

The “transition provision” of Chapter 2 provides:

(a) In the fiscal year 1982 only, each State shall certify to the responsible Federal agency that it is in compliance with section 1742 and that it is prepared to use all or part of available block grant funds. Such certifications shall be submitted to the responsible Federal agency prior to the beginning of the first quarter of the fiscal year 1982 or at least 30 days before the beginning of any other quarter of that fiscal year. For purposes of this section, the quarters for the fiscal year 1982 shall commence on October 1, January 1, April 1, and July 1 of the fiscal year 1982.
(b) Except as otherwise provided in this Act, until such time as the responsible Federal agency receives a certification from a State pursuant to subsection (a), such agency shall distribute the block grant funds involved for programs to which the funds relate and which are discontinued by this Act * * *.

OBRA, supra, § 1743 at 95 Stat. 763-764.

III.

FACTUAL BACKGROUND

The OBRA was signed into law by President Reagan on August 13, 1981.

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